Uber (NYSE:Uber) and Pony.ai (NASDAQ:Pony) launched a strategic partnership Tuesday to launch autonomous Robotaxi Services in the Middle East.
After the news, Pony. EAI shares rose, with trading up 7% earlier on Tuesday.
The partnership will bring Pony’s self-driving cars to Uber’s platform, starting in the region and then expanding to more global markets. It's a huge move for both companies, especially Pony.ai, which is working to expand the world of its driverless technology.
The plan is to combine Uber's huge ride coverage with Pony.ai's virtual drive system, a platform for vehicles running in various car types and services.
Founded in 2016, Pony.ai already exists in China, East Asia, Europe and the Middle East. The company builds its own autonomous driving software and hardware internally.
While the technology looks promising, Pony.ai still faces financial headwinds. It is burning through cash, profitability remains out of reach, under pressure to value indicators.
This article first appears on Gurufocus.
